Most rates decline: Is now the best time to buy? | Mortgage and refinance rates for March 12, 2025
National mortgage rates were mostly down compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed and jumbo loans receded, while rates for ARM loans increased.
Changes in mortgage rates are caused by several things, some more influential than others. The Federal Reserve has paused its rate-cutting cycle as inflation stays elevated. The latest inflation report from the Labor Department showed an unexpectedly higher reading.
Also in the picture: employment. The latest jobs report for February revealed the labor market softened somewhat, with unemployment rising to 4.1 percent.
That isn't likely to translate to Fed cuts anytime soon, however.
“These data came in quite close to market expectations and hence should not result in much change concerning Fed policy,” says Mike Fratantoni, chief economist and senior vice president for the Mortgage Bankers Association (MBA). “MBA anticipates that the Fed will keep their target rate steady through the next quarter but will likely cut one more time this year as inflation moves slowly to target and the job market softens.”
For now, though, the jobs report could push mortgage rates further down, in time for spring homebuyers.
“If mortgage rates decrease further due to weakening in the job market, home sales will likely rise,” says Lawrence Yun, chief economist for the National Association of Realtors. “The influence of lower rates generally outweighs job losses. Ideally, adding jobs and decreasing mortgage rates would be preferable, but that scenario is more complex.”
| Mortgage type | Today's rate | Last week's rate | Change |
|---|---|---|---|
| 30-year fixed | 6.68% | 6.69% | -0.01% |
| 15-year fixed | 5.97% | 6.00% | -0.03% |
| 5/1 ARM | 5.94% | 5.90% | +0.04% |
| 30-year fixed jumbo | 6.69% | 6.73% | -0.04% |
Rates accurate as of March 12, 2025.
These rates are marketplace averages based on the assumptions here. Actual rates listed on-site may vary. All rate data is accurate as of Wednesday, March 12th, 2025 at 6:30 a.m. ET.
Mortgage purchase rates
30-year mortgage rate trends down
0.01%
The average rate for a 30-year fixed mortgage for today is 6.68 percent, down 1 basis point over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 6.94 percent.
At the current average rate, you'll pay a combined $643.95 per month in principal and interest for every $100,000 you borrow. That's down $0.66 from what it would have been last week.
15-year mortgage rate declines
0.03%
The average 15-year fixed-mortgage rate is 5.97 percent, down 3 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost $842 per $100,000 borrowed.
5/1 ARM trends higher
0.04%
The average rate on a 5/1 ARM is 5.94 percent, rising 4 basis points over the last 7 days.
Monthly payments on a 5/1 ARM at 5.94 percent would cost about $596 for each $100,000 borrowed over the initial five years.
Jumbo mortgage eases
0.04%
The average jumbo mortgage rate today is 6.69 percent, down 4 basis points over the last week. This time a month ago, jumbo mortgages' average rate was greater than 6.69 at 6.96 percent.
At today's average jumbo rate, you'll pay principal and interest of $644.61 for every $100,000 you borrow. That's down $2.66 from what it would have been last week.
Mortgage refinance rates
30-year mortgage refinance moves lower
0.02%
The average 30-year fixed-refinance rate is 6.68 percent, down 2 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was higher at 6.94 percent.
At the current average rate, you'll pay $643.95 per month in principal and interest for every $100,000 you borrow. That's $1.33 lower, compared with last week.
Will mortgage rates go down in 2025?
Mortgage rates have started off 2025 slightly higher compared to 2024 and 2023. The average 30-year fixed rate was 6.72 percent as of March 5, according to Bankrate’s survey of lenders. This represents a dip from a 6.97 percent average in February, and down from an average 7.09 percent this time last year.
At the next Fed meeting, policymakers will release updated economic projections, which could offer clues as to when rate changes might happen.
Keep in mind the Fed doesn’t delegate fixed mortgage rates. Those tend to track the 10-year Treasury yield, which moves up or down depending on investors’ tolerance for risk — a sentiment that shifts with inflation and other economic reports. The 10-year yield has remained elevated so far in 2025.
Should you refinance your mortgage this year?
Whether you refinance your mortgage hinges on a few things: your rate today, how rates might move in the future and your long-term plans.
Eighty-four percent of collective mortgage debt is priced at 6 percent or below, according to Realtor.com. If current forecasts bear out and rates stay within the 6 percent range, most mortgage holders won’t be able to refinance to a lower rate.
Still, if you’re set on refinancing to pull cash out of your equity, keep your goals in mind.
“If your intention is to take cash out of your home to pay down credit card debt, I'd urge caution: Make sure you've got your spending under control before you tap home equity,” says Jeff Ostrowski, principal writer at Bankrate. “The last thing you want is to use the proceeds of a refi to pay off debt, only to find yourself in the same situation in a year."
How to get a low mortgage rate today
If you're shopping for a mortgage now, here a few tips to help you get the best possible rate:
- Improve your credit score. While you can get a mortgage with a lower score, the best rates go to borrowers with a 780 or higher. Here are some ways to help increase your score before you apply for a mortgage.
- Raise your down payment. If you're buying a home and able to afford it, consider making a higher down payment. You'll borrow less and get a lower rate.
- Shop around. Compare mortgage offers from at least three different lenders.
- Lock your rate. If you were preapproved for an attractive rate but think rates might rise before you find a home, it might make sense to lock in your offer or inquire about a float-down option. With the latter, you'll lock in your lower rate now, but can get an even lower rate if prevailing rates fall.
More on current mortgage rates
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
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